Safaricom Ordered to Pay KSh 1.4 Billion for IP Infringement
The High Court of Kenya has ruled that Safaricom PLC must pay KSh 1.4 billion to innovator Peter Nthei Muoki and his company, Beluga Limited, for infringing on their intellectual property rights related to the M-PESA Go service. This landmark decision also includes a mandate for Safaricom to pay a 0.5% royalty on future M-PESA revenues, marking a significant moment in Kenya's intellectual property landscape.
The court found that Safaricom's M-PESA Go, launched in November 2022, closely resembled Muoki's "M-Teen Mobile Wallet" concept, which he had pitched to the company in 2021. The judge rejected key parts of Safaricom's defense, emphasizing the importance of protecting local innovations. This ruling is being hailed as one of the most significant intellectual property decisions in Kenya’s history.
Peter Nthei Muoki is known for his entrepreneurial spirit and innovation within the tech space in Kenya. His work with Beluga Limited has focused on developing financial solutions aimed at enhancing accessibility for families and children. The M-PESA Go product, which came under scrutiny, was designed to facilitate parental control over children's mobile transactions.
The broader context of this ruling highlights ongoing discussions about intellectual property rights in Kenya, particularly in the tech industry. Safaricom, a leading telecommunications provider in the region, has faced scrutiny over its practices related to innovation and competition. Following the ruling, Safaricom has secured a 30-day suspension of the judgment to allow for an appeal at the Court of Appeal, indicating that the case may not be settled yet.
This case could set a precedent for how intellectual property is handled in Kenya, potentially encouraging more local innovators to protect their ideas and seek redress when their rights are infringed upon. As the appeal process unfolds, the implications for both Safaricom and local innovators will be closely watched.
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